Business Bayani PH

In a big move, Capital A Berhad, the parent company of AirAsia, is selling its aviation business to AirAsia X Berhad (AAX). This includes AirAsia Malaysia and AirAsia subsidiaries in Thailand, Indonesia, Philippines, and Cambodia. The goal is to simplify operations and potentially give more value to shareholders.

Capital A’s CEO, Tony Fernandes, shared that all their businesses are doing well and ready to grow. However, getting funds for expansion has been tough due to Capital A’s PN17 status. Fernandes said, “We’ve been talking to investors who prefer a focus on aviation.”

To tackle this challenge and bring in funds, Capital A is selling its aviation business to AAX. The plan is to create a pure aviation company under the AirAsia brand, pending the final agreement. Fernandes is confident this will help the aviation business grow and become more profitable.

The move also aims to highlight the value of Capital A’s other businesses, like logistics, MRO and Inflight services, and digital services. Shareholders will gain from the sale through increased Capital A shares and shares in the larger aviation group.

This shift aligns with market preferences, making it clear how valuable both aviation and non-aviation businesses are.

The announcement about this strategic move has been made on Bursa Malaysia. After the aviation business sale, Capital A plans to present a comprehensive plan by June 30, 2024. The goal is to keep everyone informed during this process.

In summary, Capital A’s sale of its aviation business to AirAsia X is a big step for simpler operations, financial growth, and better shareholder value. The move shows Capital A’s commitment to adapting to market preferences and keeping things clear and focused.◼